WorldCom

(WCOME)

plunged 90% Monday morning after the company said it faced delisting from the Nasdaq stock market Friday.

WorldCom shares dropped to 8 cents as a massive accounting scandal continued to envelop the No. 2 long-distance carrier. More than 400 million shares changed hands in the first hour of trading. The company said last week it had overstated profits by $3.8 billion in just the past five quarters.

Monday morning, lenders for WorldCom's $2.65 billion and $1.6 billion senior unsecured credit facilities told the company that "events of default had occurred," WorldCom said in a statement, adding that such a move was expected.

Lenders who hold 51% of the loans for the $2.65 billion facility could vote to speed the date of repayment, which could require the funds to be repaid immediately, WorldCom said.

The company also said, as expected, that it has received a termination notice for a $1.5 billion program that secures accounts receivables and that it will use collections on the accounts to pay the $1.2 billion outstanding. WorldCom shares have lost 99% of their value this year as investors worried about the prospect of a cash squeeze, even before the latest accounting problems were disclosed.